MGMT 3000 1st Edition Lecture18 Outline of Last Lecture I Going Global II Being Aware of Cultural differences III Language and Cross cultural training Outline of Current Lecture I Organization II Departmentalization Current Lecture Organization Organizational Structure Vertical and Horizontal Configuration of departments authority and jobs within a company Who reports to whom Who does what Where is work done Organizational Process Collection of activities that transforms inputs into outputs that customer s value How do things get done Departmentalization Method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks Functional departmentalization Organizes work and workers into Separate units responsible for particular business functions or areas of expertise o Ex Sales accounting human resources o Advantages allows work done by highly qualified specialists lowers cost by reducing duplication makes communication easier o Disadvantages cross department coordination is difficult and slower decision making Product Departmentalization Organizes work and workers into separate units responsible for producing particular products or service These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Advantages allows people to specialize in one area of expertise makes it easier to assess performance makes decision making faster o Disadvantages duplication coordination across different product departments Customer Departmentalization Organizes work and workers into separate units responsible for particular kinds of customers o Ex Residential small businesses larger corporations o Advantages focuses on customer needs allows specialization of products for customer needs o Disadvantages duplication of resources workers might please customer while hurting the firm Geographic Departmentalization organizes work and workers into separate units responsible fro doing business in particular geographic areas o Advantages Helps companies respond to different markets reduces costs by locating unique resources closer to customer o Disadvantages duplication of resources difficult to coordinate departments Matrix departmentalization hybrid structure in which 2 or more forms of departmentalization are used together o Most common product and functional o Most employees would have 2 respond to 2 managers 1 from each core part of matrix o More cross functional interaction o Requires significant coordination between different parts of matrix o Advantages allows companies to manage large and complex tasks gives much more diverse set of expertise and experience o Disadvantages requires high level of duplication confusion and conflict between managers requires more management skills o Matrix evolve from simple managers in different parts of matrix negotiate conflicts and resources directly into complex specialized managers are added to organizational structure
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